Samantha

Best Rewards Credit Cards in Canada for 2020

February 27, 2020 By Samantha 4 Comments

Rewards credit cards offer frequent flyer points and merchandise discounts to encourage frequent use. By maximizing points, users benefit from affordable airfare, hotel room benefits, and exclusive dining and shopping experiences.

Overview of Rewards Credit Cards

Customers who use rewards cards are offered miles or points for each purchase they charge to the card. Points can be redeemed for hotel or motel stays, free flights, entertainment, brand and select product purchases, and gift cards and vouchers. Points can also be exchanged for specialized services, charity donations, classes and training, and recurring bill payments. Some banks feature a catalogue with a range of products to choose from, including movie tickets, spa and wellness, travel merchandise, accessories, and clothing. Sign-up bonuses are also offered to encourage spending.

Best Rewards Cards Overall

The best cards offer customers the choice to exchange points or miles for a number of options. These include catalogue merchandise, discounts on hotel bookings, cruises, and vacation packages, and statement credits. Cardholders also benefit from transferable points that can be transferred to hotel loyalty programs, airlines, and other partners.

Scotiabank Gold American Express^® Card

One of the top cards to earn extra points is the Scotiabank Gold American Express^® Card, featuring access to exclusive events and special offers, supplementary cards, and comprehensive insurance coverage. Holders earn 1 point for each dollar spent on daily purchases, 3x points on select streaming services, transit, and gas, and 5x points on dining, groceries, and entertainment. Extra points are offered for theatre and movie tickets, food subscription and delivery, fast food, and restaurant purchases. The card also comes with comprehensive insurance package, including travel accident, lost and delayed baggage, and flight delay insurance. The first $1,000 spent on everyday purchases earn 20,000 points. Added perks include no foreign transaction fees, front of the line tickets, and airport lounge access.

Eligibility criteria:

Minimum personal income required: $12,000
Interest Rate: 19.99%
Have not filed for bankruptcy: 7 years
Annual fee: $120

Best No Fee Rewards Card

No fee cards are great in that they combine two perks – no annual fees and frequent flyer or rewards points. This helps customers save on fees while earning money in the form of points. Common benefits also include travel and return protection, complimentary memberships, travel assistance services, and low introductory interest rates.

Tangerine Money-Back Credit Card

A great card to save on annual fees, the Tangerine Money-Back Credit Card also features unlimited money-back rewards that are paid on a monthly basis. Customers earn unlimited rewards and can either redeem them into their savings accounts or add them to their card balance. Holders earn 2 percent cash back across different categories such as entertainment, home improvement, drug store purchases, and parking and public transportation. While everyday purchases earn 0.5 cash back, recurring bill payments and gas, restaurant, and furniture purchases earn 2 percent money back. Additional perks include free supplementary cards, promotional balance transfer rate.

Eligibility criteria:

Annual income: $12,000 or higher
Interest Rate: 19.95%
Have not declared bankruptcy: 7 years
Annual fee: none

Best Cashback Card

Cashback cards offer money back on everyday spending and feature shopping perks, entertainment benefits, and sign-up bonuses. The main types are rotating bonus category, tiered cashback, and flat-rate cashback. Rotating bonus category cards offer extra rewards for spending in select categories that change quarterly. Examples of bonus categories include dining, groceries, and gas. Keeping track of the cashback calendar helps maximize rewards.

Scotia Momentum^® Visa Infinite

This Scotiabank rewards credit card with extra cash back, the Scotia Momentum^® Visa Infinite has the most awards in 2019. Customers earn 1 percent back on daily purchases, 2 percent on transit and gas, and 4 percent on subscription services, recurring bill payments, and grocery store purchases. Two percent back is offered on rideshare, trains, taxis, and buses. Customers earn 4 percent back on subscription payments such as lifestyle boxes, music and video streaming, and meal kit delivery. They also earn 4 percent back on bill payments such as gym memberships, utility bills, and insurance premiums. Supplementary cards are also available.

Added benefits include hotel room upgrades, guaranteed best available rates, complimentary concierge service, and car rental discounts. The card also comes with comprehensive insurance coverage, including flight delay, travel emergency and new mobile device insurance.

Eligibility criteria:

Household income: $100,000 or higher
Annual income: $60,000 or higher
Interest Rate: 20.99%
Annual fee: $120

Best Travel Rewards Card

The best cards that come with rewards allow holders to redeem points for travel, shopping, and cash and often feature rotating cashback categories. Added incentives include extra points, annual travel credit, sign-up bonuses, and no earning caps or redemption limitations.

Scotiabank Passport^™ Visa Infinite^* Card

As one of the best rewards credit cards to earn bonus points, the Scotiabank Passport^™ Visa Infinite^* Card offers generous complimentary bonuses. Customers earn 10,000 rewards points when they spend $40,000 or more on an annual basis. Cardholders earn double points for entertainment, dining, grocery purchases, and daily transit. Transit purchases include taxis, subways, and buses. There is an option to add supplementary cards to maximize rewards. Added benefits for users include airport lounge access, no foreign transaction fees, and Avis Preferred Plus Membership. The card also comes with comprehensive insurance package, featuring travel accident, flight delay, travel emergency medical, and other types of insurance.

Eligibility criteria:

Annual fee: $139
Minimum personal income: $60,000
Minimum household income: $100,000
Interest Rate: 19.99%
Have not declared bankruptcy: 7 years

Best Store Card

A store card is a good choice for customers with little or no credit exposure and those who need to rebuild their credit history. This enables borrowers to access more affordable credit solutions. Store cards come with additional benefits such as free shipping, discounts at stores, cafes, and restaurants, and free item returns.

PC Financial World Elite MasterCard

The PC Financial World Elite MasterCard is one such store card that comes with no annual fee and features standard and optional benefits. Customers earn 45 points per $1 when shopping at Shoppers Drug Mart and 30 points at PC Travel, Esso, and Mobil. All other purchases earn 10 points per $1. PC Financial also offers an easy to use rewards calculator to help cardholders calculate points across different categories. Spending categories include groceries, travel, gas, and health expenses. Holders who spend $500 on travel, for example, earn 180,000 PC Optimum points worth $180. Optional extras that come with this card include victim assistance, credit education, and daily surveillance and monitoring. Customers are also offered concierge service, identity theft assistance, travel emergency medical insurance, and more.

Eligibility criteria:

Minimum household income: $150,000
Minimum personal income: $80,000
Interest Rate: 19.97%
Annual fee: None

Best Card for Groceries

Grocery credit cards offer generous cash back on grocery store purchases and are thus ideal for big and frequent shoppers. Many cards also feature cash back on gas purchases, utility bills, and other expenses. Some cards come with rotating categories while others offer multiple rewards rates or flat rates. Co-branded cards are also available as to allow customers to earn extra points or cash back at select stores.

Triangle World Elite MasterCard by Canadian Tire

One of the best cards offering rewards, the Triangle World Elite MasterCard by Canadian Tire offers customers access to personalized offers and member-only events. Holders earn 4 percent back at participating retailers, including SportChek, Hockey Experts, Sports Rousseau, Atmosphere, and Canadian Tire. Spend and collect bonuses are also available at select retailers such as L’Entrepôt du Hockey, Sports Rousseau, Canadian Tire, and others. Cardholders also earn 7 cents per litre in CT Money at Husky and Canadian Tire Gas+. In addition, they are offered perks and incentives such as no interest financing, concierge service, and roadside assistance. The Triangle App helps cardholders to organize their finances and keep track of purchases and weekly exclusive offers. The card also comes with car rental loss damage/collision waiver and priority queuing.

Eligibility criteria:

Minimum income: $80,000
Annual Fee: None
Interest Rate: 19.99%

The best rewards credit cards offer multiple benefits such as points and cash, annual fee waivers, comprehensive insurance, and access to exclusive events and loyalty programs. Customers also benefit from one-time bonuses, unlimited cashback or points on grocery store, dining, and other purchases, and VIP status. Bonus points are also offered after the card member anniversary. The best cards with rewards also come with no category restrictions, seat restrictions, and blackout dates when promotions or discounts are no longer available.

Most issuers have minimum income requirements to ensure that customers have sufficient income to make regular payments. Persons with higher incomes are also more likely to be big shoppers who regularly charge purchases on points cards.

Top 12 Best Credit Cards in Canada for 2020

February 27, 2020 By Samantha 20 Comments

This post has been updated on February 27th, 2020 with our most recent reviews and rankings of popular credit cards offered to Canadian consumers.

The best credit cards offered by Canadian finance companies, unions, and banks feature money back, airmiles and bonus points, comprehensive insurance coverage, no or low foreign transaction fees, and plenty more.

	Credit Card	Interest Rate	Annual Fee	Type
1.	Scotia Momentum Visa Infinite	20.99 %	$120	Cashback Credit Card
2.	SimplyCash American Express	19.99 %	No annual fee	Cashback Credit Card
3.	Tangerine Money-Back Credit Card	19.95%	No annual fee	Cashback Credit Card
4.	Scotiabank Gold American Express	19.99 %	$120	Travel Credit Card
5.	BMO World Elite MasterCard	19.99 %	$150	Travel Credit Card
6.	Home Trust Preferred Visa	19.99 %	No annual fee	No Foreign Transaction Fees
7.	Rogers Platinum MasterCard	19.99 %	No annual fee	No Foreign Transaction Fees
8.	Scotiabank Platinum American Express	19.99 %	$399.00	Insurance Coverage
9.	BMO Cashback World Elite MasterCard	19.99 %	$120	Insurance Coverage
10.	Scotiabank L’earn Visa Card	19.99 %	No annual fee	Student Credit Card
11.	Scotiabank Scene Visa Card	19.99 %	No annual fee	Student Credit Card
12.	Refresh Financial Secured Visa Card	17.99 %	$12.95	Secured Credit Card

Best Canadian Cashback Credit Cards

There are credit cards that feature extra cash back during the promotional period as well as no annual fee, generous welcome bonuses, and no categories or limits.

1. Scotia Momentum^® Visa Infinite Card

Offered by the Bank of Nova Scotia, the Scotia Momentum Visa Infinite Card, for example, goes with 4 percent cash back on groceries and gas. The card also features concierge service, travel accident insurance, flight delay insurance, car rental discounts, and a lot more. Optional protection is also offered in case of critical illness, lockout, strike, job loss, or disability. Customers with no credit history are welcome to apply. However, there is a minimum income requirement of $60,000 a year. Supplementary cards are available to earn more cash back.

There are plenty of added benefits for holders. They are offered discounts on wine, vineyard tours, wine tastings, access to exclusive and premier events, hotel room upgrades, and more.

New Offer: Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). A welcome offer value of $350*.
Purchase interest rate: 20.99 percent
Balance transfer and cash advance rate: 22.99 percent
Annual fee: *$120 waived for the first year. For accounts opened by April 30, 2020
Credit limit: $5,000 or higher

2. SimplyCash^TM American Express

The SimplyCash American Express Card is also a great choice to earn cash rewards and goes with supplementary cards, no annual fee, and entertainment and travel benefits. Customers earn 5 percent back during the 6-month promotional period and 1.25 percent back afterwards. Additional benefits include car rental theft and damage coverage, promotional balance transfer rate, shopping discounts, weekend gateway deals, and access to exclusive events such as theater performances and concerts.

Funds advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual Fee: No

3. Tangerine Money-Back Credit Card

Another option to look into, the Tangerine Money-Back Credit Card goes with no annual fee, 0.5 back on regular purchases, and 2 percent back on select purchases (categories of your choice). Customers earn unlimited rewards and can either redeem them into their savings accounts or add them to their card balance.

Best Travel Credit Cards

Canadian travel rewards cards feature travel benefits and opportunities, rewards programs, welcome bonuses, double or extra points on travel expenses and gas, and so on. Some cards feature deals and saving opportunities as well as VIP lounge access, travel upgrades, free baggage, and airfare discounts. There are added incentives such as access to luxury airport lounges, car rental and hotel discounts, and comprehensive insurance, including car rental collision, flight delay, and trip delay. Most issuers advertise cards with no blackout dates and other restrictions and limitations.

4. Scotiabank^® Gold American Express^®

The Scotiabank Gold American Express Card is the perfect choice for customers with no credit history and for newcomers to Canada. The card features add-ons and perks such as special offers, access to airport lounges, concierge service, and travel insurance. Concierge services cover things like show and concert ticket reservations, restaurant reservations, and more. The comprehensive insurance coverage includes lost and delayed baggage, flight delay, trip cancellation, travel accident insurance, etc. The best part is that there are no travel restrictions, and points can be redeemed at any time.

New Offer: Earn 20,000 bonus Scotia Rewards points with your first $1,000 in everyday purchases in first 3 months. (For accounts opened by March 1, 2020)
Balance transfer rate: 22.99 percent
Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $120

5. BMO^® World Elite^TM MasterCard^®

Offered by the Bank of Montreal, the BMO World Elite MasterCard is also a great choice to earn rewards points and take advantage of a host of added benefits. The list of perks includes complimentary lounge access, medical and travel coverage, roadside assistance, and a generous welcome bonus of 35,000 points on purchases over $3,000 during the first 3-month period. Holders earn 2 points on all purchases and 3 points on entertainment and restaurant and travel purchases.

Annual fee: $150
Purchase rate: 19.99 percent
Cash advance rate: 22.99 percent

Best Credit Card with Low/No Foreign Transaction Fees

No foreign transaction fee cards come handy when making purchases abroad or overseas. This is because conversion and foreign transaction fees hike up your card bill. Banks and finance companies offer cards with added incentives such as travel points, complimentary one-time bonuses, no annual fee, money back, and complimentary travel insurance. Some cards also feature cash statement credit, roadside assistance, cash sign-up bonuses, and supplementary cards. There are plenty of perks to look into, including discounts on hotel bookings, extended travel insurance, travel enhancement credit, and a lot more.

6. Home Trust Preferred Visa

The Home Trust Preferred Visa card is one option to consider to avoid foreign transaction fees. In addition to no conversion surcharges, the card goes with guaranteed hotel bookings, complimentary roadside assistance, 1 percent money back, and auto rental loss and collision coverage. There are no cashback limits and restrictions and no annual fee. Emergency cash is also available for peace of mind and so is emergency card replacement. To apply for the Home Trust Preferred Visa customers are asked to provide details such as address and name of current employer, annual income, previous address, etc.

Cash advance rate: 19.99 percent
Purchase rate: 19.99 percent
Grace period: 21 days or more

7. Rogers^TM Platinum MasterCard^®

Another great card with a low foreign transaction fee, the Rogers Platinum MasterCard is offered by the Rogers Bank and goes with a complimentary bonus, money back rewards, and an annual fee waiver. Cash back can be redeemed at different locations, including Fido and Rogers as well as for merchandise, tickets, subscriptions, and more. Points can be redeemed for pre-payed services as well (like Chatr). The Pay with Rewards app by Rogers is a convenient way to redeem money back rewards.

Foreign transaction fee: 2.5 percent of the amount/
Balance transfer and cash advance rate: 21.5 percent
Purchase rate: 19.99 percent
Annual fee: none

Best Credit Cards with Insurance Coverage

Insurance credit cards feature comprehensive coverage, including medical, emergency travel, baggage loss, trip cancellation, and other types of coverage. Providers offer a host of added benefits such as free travel, money back, exclusive shopping and travel offers, and no or low annual fees. Customers gain access to tickets for music and theatre performances, fine dining experiences, perks at resorts and luxury hotels, concierge, and more.

8. Scotiabank Platinum American Express^®

This credit card by the Bank of Nova Scotia allows users to collect rewards points for select and everyday purchases. They earn 1 point for each dollar on regular purchases and 4 points per dollar on entertainment and dining, grocery purchases, and gas. There are no travel restrictions, and points can be redeemed at anytime and anywhere. The card also goes with a large minimum credit limit of $10,000. Users are offered 7 types of insurance coverage, including trip interruption and cancellation, emergency medical, lost and delayed baggage, flight delay, etc. Added benefits include premium concierge, VIP pass for exclusive events, complimentary lounge, and a lot more. Customers also enjoy access to special events and experiences, including dining, theatre shows, films, music, and shopping.

Purchase rate: 19.99 percent
Balance transfers/cash advances: 22.99 percent
Annual fee: $399.00

9. BMO^® Cashback^® World Elite^® MasterCard^®

Also a great card with comprehensive coverage, the BMO Cashback World Elite MasterCard goes with a host of benefits and incentives, including cash back, supplementary cards to earn more. Customers are offered insurance coverage, including extended warranty and purchase protection, collision damage waiver on car rentals, as well as out of country and out of province emergency medical coverage. In addition, holders earn 1.5 percent back on all purchases charged on the card. Cash can be used in the form of credit or held in an investment or savings or checking account. The minimum income requirement is $80,000 for individual cardholders and $150,000 for households.

Interest rate on purchases: 19.99 percent
Interest rate on cash advances: 22.99 percent
Annual fee: $120

Best Student Credit Cards

Many banks in Canada offer student credit cards, including Scotiabank, TD Canada Trust, RBC, and others. Student cards feature multiple benefits such as competitive interest rates, no annual fee, and rewards points. Users earn points on pharmacy and grocery purchases, gas, bills, and more. Some cards offer extra points on entertainment, restaurant, and travel purchases. The best part is that banks have lenient requirements when it comes to credit rating.

10. Scotiabank L’earn^TM Visa Card

Scotiabank offers a student Visa that allows customers to build credit with responsible use and timely payments. Applicants with little credit exposure and no credit history qualify and so do newcomers to Canada. The card goes with no annual fee, money back, car rental discounts, and other benefits. Optional protection for unexpected events is available, including death, critical illness, loss of employment, and others. Students also earn cash back at a rate of 1 percent. The minimum credit limit is $500, and the grace or interest-free period is 21 days or longer. Applicants are asked to provide personal and school information such as expected graduation date, start date, and name of college, university, or another institution.

Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent

11. Scotiabank Scene^® Visa Card

Also a great card by the Bank of Nova Scotia, the Scotiabank Scene Visa Card allows customers to earn rewards points on select and regular purchases. Users earn 5 points per dollar at Cineplex, both online and at Cineplex theatres, and 1 point on regular purchases such as clothing, transportation, groceries, meals, and so on. Thus, customers who spend $200 on movies a month will earn a total of 1,000 points. During the first 3 months, the first $500 spent on regular purchases earn a bonus of 2,500 points. Points can be redeemed in different ways – for meals, movies, and more. There is a minimum annual income requirement – $12,000.

Annual fee: none
Cash advances: 22.99 percent
Purchase rate: 19.99 percent

Best Secured Credit Cards and Credit Cards for Bad Credit

Secured cards allow customers with poor and tarnished credit to rebuild their history and rating. This is good news for customers with missed and late payments and a history of delinquencies, foreclosures, and other negative events. Making regular and timely payments over a certain period of time allows borrowers to rebuild credit and apply for loans and cards with beneficial terms. Some secured cards go with higher interest rates, but this is not always the case. The credit limit varies and is usually equal to or lower than the deposit made. The deposit acts as a guarantee of timely payment. This is the reason why customers are approved without credit check. What is more, some providers offer the option to add an authorized user free of charge. Other benefits include Visa and MasterCard benefits, no annual fee, low rate options for authorized and primary cardholders, and more.

12. Refresh Financial Secured Visa Credit Card

This secured Visa by Refresh Financial helps customers to improve their credit score and goes with a competitive interest rate and low annual fee. Virtually everyone gets approved, regardless of their rating. In addition to fast and easy approval, there are added benefits for users, among which free financial education and the opportunity to build savings. The financial intelligence training program offers short educational movies to teach customers how to set financial goals, build personal wealth, save for the future, and use credit cards responsibly. Responsible use is obviously the key to building or rebuilding credit. Wise money management is also essential to stay away from debt in the long run and build a financial safety net. Users also learn how credit works and how to create a personal brand.

Interest rate: 17.99 percent
Annual fee: $12.95

Top 6 Credit Cards for Bad Credit in Canada 2020

February 8, 2020 By Samantha 175 Comments

This post has been updated on February ^8th, 2020 to reflect recent developments in the Canadian financial and credit markets.

Accessing credit is never easy if you have anything but pristine credit score. The most common form of borrowing of course is a credit card, and there are many Canadian financial institutions that offer variety of cards targeted at different market segments. The bad credit credit card market in Canada is really under-served with many of the big players withdrawing their financial products including Peoples Trust who stopped offering their secured credit card, and Affirm financial who also no longer offer their credit cards for bad credit. Home Trust still offer a secured credit card, but they are very picky and getting one from them is not an easy task. Still there is hope for Canadian consumers with bad credit, as a new player called Refresh Financial has entered the secured/bad credit card marketplace. Refresh offer credit cards for borrowers with bad credit, and the good news is they do not do a credit check. The card is relatively easy to qualify for, however keep in mind that this is a secured card, and you will have to come up with the deposit to get one. As the credit conditions get tighter in Canada it will get harder to get a credit card if you have a poor credit, however don’t get discouraged – just check our list of card below and use it as a starting point in your quest for credit card. * It should be noted that some clients reported that credit checks have been done.

There are different options for customers with poor credit, from payday loans and cash advances to secured lines and credit cards for bad credit.

Do You Need a Credit Card if You Already Have Bad Credit?

This depends on your lifestyle, financial literacy, and spending habits but a credit card can actually help build a healthy score. Timely payments allow users to rebuild credit. If you often make financial blunders and are knee-deep in debt, you may want to learn more about credit first.

Can You Get a Credit Card with Bad Credit?

Some lenders offer cards to borrowers with poor and average credit. They often offer cards with a lower limit and higher interest rates because they are considered to be high risk.

Does a Credit Card Help You Rebuild Bad Credit? Secured Credit Cards Explained

A credit card is a useful tool to reestablish credit unless you make late payments. Missed payments also affect your score. Avoid prepaid cards because payments are not reported to the major bureaus. Other cards, including secured and department store cards, help build credit. To get a secured card, clients are asked to make a deposit which is higher or equal to the card’s limit.

Types of Credit Cards for Bad Credit

Secured Credit Cards

Secured cards offer many benefits, and one is that it is easier to get approved compared to standard credit cards and unsecured loans. The reason is that financial establishments take no risk. Cardholders use their own money (the deposit made) to make purchases. Lenders will not return the deposit in case of default. They refund the deposit made when the customer decides to close the account. The payments are usually reflected in the borrower’s credit report. The limit normally varies from $200 – $500 to $5,000. Many issuers advertise low annual fees in the range of $10 – $30.

Low Interest Credit Cards

Low interest cards are offered by major unions, banks, finance companies, and online lending services. The main benefit for users is that they save on interest charges. Some issuers offer low interest cards to borrowers with less-than-perfect credit and feature perks such as gas rewards, cash back, payment alerts, and others. The credit line is usually lower, for example, $500 – $1,000, but some companies advertise opportunities for line increases provided that cardholders make timely payments. It is important to ask whether payments are reported to TransUnion or Equifax on a regular basis.

Guaranteed Credit Cards

Guaranteed approval cards by MasterCard and Visa are also offered to borrowers with less than perfect and tarnished credit. While some issuers advertise guaranteed or instant approval, they offer secured versions whereby the deposit serves as a guarantee of timely payments. They are available to consumers who need credit improvement and feature standard benefits such as price protection, travel assistance, baggage delay coverage, and others. Basically, issuers that offer guaranteed cards have more lenient or minimum requirements for approval. They may advertise no employment or credit checks and no application or processing fees.

Prepaid Credit Cards

Prepaid cards allow users to make purchases and payments but are not the best solution for rebuilding credit. Payments are usually not reported. Still this is one option for customers with bad credit and a history of consumer proposals, foreclosure, bankruptcy, and seriously delinquent accounts. There are different reload options, including in person, online, and through direct deposit. Some issuers advertise no-fee cash withdrawals. Prepaid cards also feature online bill pay options, balance alerts, free ATM withdrawals, business and payroll programs, refer-a-friend bonuses, and other benefits. Many issuers advertise no activation or application fees, free online banking, online statements, and free direct deposits.

Store Credit Cards

A department store card is yet another option for borrowers with bad credit and offers plenty of added benefits. Cardholders benefit from perks such as promos and discounts, sales, savings on major or one-time purchases, coupons, and other benefits. Some department stores even advertise interest-free financing. Holders enjoy a zero introductory rate for a certain period, for example, six months. However, department store cards usually go with higher charges than secured and standard credit cards. While the rate is slightly higher, this is one option for applicants with a thin credit file and borrowers who need a credit boost.

Where Can You Find Credit Card Lenders for People with Bad Credit?

Major financial establishments such as RBC, BMO, and other big banks offer cards for bad credit.

Affirm MasterCard^®

This card is no longer available.

Affirm Financial Services specializes in providing credit solutions for Canadians who may have difficulty obtaining a credit card or loan from traditional financial institutions. Here are the most important Affirm MasterCard® features:

True credit – no security deposit required
Credit limit up to $3,000
Use it anywhere MasterCard® cards are accepted
Fixed interest rate – 29.99% for homeowners and 34.99% for non-homeowners
Reports to credit bureaus every month

This card is issued by Peoples Trust Company pursuant to license by MasterCard® International Incorporated. MasterCard® and MasterCard® Brand Mark are registered trademarks of MasterCard® International Incorporated.

No-Fee Scotiabank Value^® Visa Card

The Bank of Nova Scotia features the No-Fee Scotiabank Value Visa Card which is available to debt-ridden borrowers with credit problems. The bank offers benefits such as card protection, an introductory rate of 3.99 percent, and car rental discounts. Additional benefits include itemized transactions and supplementary cards. The introductory rate applies to balance transfers and cash advances, which makes it a great choice if you plan to transfer high-interest balances to a low-interest card. The low introductory rate helps borrowers to pay down existing balances faster and get rid of debt.

• Interest rate: 16.99 percent
• Annual fee: zero
• Credit limit: $500 or more

Refresh Financial Secured Visa

This secured card is a new product from Refresh Financial targeted at customers with low credit score or no credit. The card can be used to re-build credit score, and as it doesn’t require a credit check, it may be your best chance for getting a credit card. Here are the main Refresh secured credit card features.

Credit limit: $200 to $10,000
Purchase Interest rate: 17.99 percent
Annual fee: CAD $12.95

Peoples Trust Secured MasterCard^®

This card is no longer available.

Peoples Trust Secured MasterCard is ideal for those who are new to credit, consumers with credit problems, new immigrants, and students. Holders can use it just like a regular card to make hotel bookings and everyday purchases, car rentals, online purchases, and anything else. This card also allows consumers to make cash advances and build credit over time. Peoples Trust advertises almost guaranteed approval, regardless of credit profile.

Minimum deposit: $500
Interest rate: 12.99 percent
Monthly fee: CAD $5.80
Monthly fee (additional cards): CAD $2.95

Home Trust Secured Visa Card

The Home Trust Secured Visa Card is another option that requires a security deposit of at least $500. The limit is based on the deposit made and ranges from $500 to $10,000. There is a low-rate option that goes with an interest rate of 14.9 percent. The standard rate is 19.99 percent and there is no annual fee. The low-rate option goes with a fee of $59. This card is offered to consumers with bad credit and everyone gets approved. If you have less than perfect or poor credit, this card will help you to build or reestablish your credit history. You can use it to book a hotel room, make purchases online and by phone, pay bills, pay for gas, and more.

Apply Now 14.90% $59 annual fee or $5 per month Apply Now 19.99% No annual fee

BMO^® Preferred Rate MasterCard^®

The BMO Preferred Rate MasterCard is a card advertised with no annual fee and an interest rate of 17.5 percent. The card also features a long interest-free period of 21 days. While applicants with bad credit get approved, those with a history of bankruptcies do not qualify. If you have filed for bankruptcy over the last 7 years, your application will be declined. BMO also requires employment and income information. Customers are offered perks and benefits such as:

• Low-rate options (11.9 percent)
• Travel benefits
• Purchase protection
• Extended warranty
• Roadside assistance
• Medical protection
• Trip cancellation coverage

Capital One^® Guaranteed Secured MasterCard^®

The Capital One Guaranteed Secured MasterCard, for example, features guaranteed approval and a limit of $300 or higher. It is a good choice for customers with no credit and tarnished credit. The good thing about this card is that you can use it like a standard card – to make bookings, for car rentals, online purchases, in-store purchases, and more. Capital One features standard benefits such as emergency cash advances and card replacement and zero liability.

• Interest rate: 19.8 percent
• Annual fee: $59

TD Emerald Visa Card

The TD Emerald Visa Card is also a good choice for bad credit borrowers and goes with benefits such as:

• Low annual fee of $25
• Security and purchasing convenience
• Automotive benefits
• Travel benefits
• Medical insurance

Applicants are allowed to add up to three cardholders. The card goes with a competitive variable rate of 12.75 percent and is a great option for borrowers with bad credit, students, and newcomers to Canada. Cardholders are offered trip interruption coverage, trip cancellation insurance, car rental discounts, and other perks. TD Emerald Visa is also advertised as a balance transfer card for debt consolidation.

RBC Visa Classic Low Rate

The RBC Visa Classic Low Rate is yet another card with a low interest rate of 11.99 percent and an annual fee of $20. Additional cards are available at no added cost. This option is a great choice for those considering debt consolidation. Major benefits include free travelers checks, worldwide acceptance, easy application, and others. Optional travel insurance is also available to protect customers in case of loss of job or illness. Customers benefit from autopayment options, cash advances, and quick application processing. This card is also an excellent choice for debt consolidation. You can use it to make one-time or larger purchases.

What to Do Next?

Once you have been approved for a low rate, department store, or secured card, it is time to learn how to manage credit responsibly. This means timely and regular payments to avoid penalty fees and charges. Late and missing payments also affect your score and chances to get approved for low-cost unsecured loans, LOCs, and premium credit cards. Avoid using multiple cards because it is more difficult to keep track of due dates, payments, and other details. Check your financial statements regularly to track your spending and payments. Using online banking is a great way to view your statements, payment history, and transactions. Make sure you check your credit report for mistakes and omissions. Consumers are entitled to receive a free report once a year.

If you have other balances, try to pay down your auto, consumer, and other loan balances to boost your score. The goal is to maintain a debt to income ratio of 30 percent or lower. Paying down small balances on different cards helps improve your score. Pick one or two cards with affordable rates and use them for payments and purchases.

Keep in mind that credit cards are intended for regular, small purchases and unexpected expenses, for example, utility and medical bills, auto insurance, plumbing and electrical problems, car repairs, and others. You can use your card for grocery shopping, bill payment, trips to the ER, car maintenance, vehicle registration fees, and other small expenses. It makes no sense to buy big-ticket items on a credit card. It is better to use a low-cost unsecured loan instead. Otherwise, you will end up paying a huge balance, and your score may suffer as a result.

If you have poor credit and find it difficult to manage your finances, you may want to contact a credit counseling service. They offer financial education to teach borrowers how to manage debt responsibly. The goal is to gain financial stability and control and make sound credit and borrowing decisions. Specialists negotiate with creditors, help customers to calculate their debt to income ratio, sort out their finances, and more.

Top 6 Secured Credit Cards for Canadians

January 30, 2020 By Samantha 68 Comments

This post has been updated on January 30^th, 2020 to keep up with new developments in the secured credit card marketplace in Canada.

It’s 2020 already and getting secured credit cards in Canada is getting harder, because fewer and fewer financial institutions here offer them. The financial products offered to Canadians with bad credit are far and few between, and this is a sad state of affairs. I get daily emails asking how to get a secured card, which one to get, which cards are easy to get, what credit score do you need to qualify for one, etc. My advice to you is to read the article below, read the many user comments talking about their experience in applying for a credit card secured by deposit, and make a decision based on your research.

Many years ago I got my first credit card from CIBC, and because I had no credit history I had to settle for a secured credit card. The card had $500 limit, which I had to deposit with the bank – not much of a credit card :). I used it for 2 years making small purchases and paying it off every month diligently, which helped me establish good credit history. While many of the big banks advertise financial products targeted at recent immigrants, and people who simply have no credit history yet, the fact is that getting even a secured credit card is much tougher nowadays in Canada. Even Peoples Trust out of British Columbia, which was a major player in the Canadian secured credit card space, decided to discontinue their card in July, 2017.

In the early 2000’s all major Canadian banks offered secured credit cards, but this is no longer the case. I haven’t seen a secured card advertised by a major Canadian financial institution for a while, and I know for a fact that Scotibank and CIBC have no such products. Even if the rest of the big banks still have such cards on offer, they are not easy to find or their use is discouraged.

If you are in the market for secured card, you might also consider getting a unsecured credit card with low limit, which should be easier to get. You can try store credit cards like Canadian Tire MasterCard for example. While not perfect this card is somewhat easier to obtain, and with less and less financial institutions offering secured credit cards, it may be the right choice for you.

Find a solution to credit issues – get a secured credit card

Individuals with a thin credit file usually apply for a secured card because they have a more limited choice, especially when it comes to specialty cards with attractive rates and terms. They are also offered to those who are new to credit as well as recent immigrants, newcomers, and students. Secured credit cards are available from unions, small and major banks, and other establishments and help consumers establish credit.

How Secured Cards Work

Issuers require a cash deposit or security funds as a guarantee of on-time payment. It is usually equal to or larger than the limit offered. The only difference between secured and unsecured cards is the fact that security funds are required because financial institutions deal with high-risk borrowers who are more likely to default. Other than that, holders can use the card to make payments online and in-store, to pay bills, and so on.

Benefits for Users

The main benefit for users is that payments are reported regularly to major bureaus such as TransUnion and Experian. Customers who keep their balance low and make on-time payments gradually establish or reestablish credit. The timing of reports and the issuer’s reporting practices determine how long it takes before your card appears on your credit file.

What Is the Right Credit Card for You?

The choice of a secured card depends on whether you are a regular bank customer or a union member and other factors. When comparison shopping, look at the credit limit, grace period, and purchase and penalty interest. In general, whether a product is right for you depends on the issuer’s reporting practices. Some establishments report only missed and late payments while others report all payments and help build credit with time.

Who Is Eligible to Apply

Individuals with any credit profile qualify, from tarnished and fair to stellar. Legal residents and Canadian citizens of legal age are eligible to apply. You must be of the age of majority for the province or territory where you reside. Some major banks like TD even offer secured cards to customers who don’t have Canadian credit history, including international students and foreign nationals (temporary residents). The range of products available depends on different factors, including your credit rating and financial situation. When applying for a secured card, consumers are often asked about estimated monthly payments, including lines of credit, loans, mortgages, and other accounts. Financial establishments also request information about your rent or mortgage payments as well as income amount, employer, and sources of income. Many card issuers require that applicants have a verifiable permanent address in Canada and a verifiable source of income (i.e. proof of income).

Top 6 Secured Credit Card Picks

#1 – First Place
No-Fee Scotiabank Value^® VISA Card

A yet another credit card by Scotiabank, this is a great solution to transfer existing balances, even though this is not a secured card. The introductory rate is just 3.99 percent and is in effect within 6 months of opening the account. The intro rate applies to credit card checks, balance transfers, and cash advances. The interest-free period is 21 days. Special discounts are offered, including car rental discounts. Optional credit card protection coverage is also available in the event of job loss, disability, or another unfortunate event.
• Balance transfer fees: none
• Interest rate: 16.99 percent
• Annual fee: none

#2 – Second Place
Refresh Financial Secured Visa

This is a brand new secured credit card from Refresh Financial targeted at customers with bad or no credit, and people looking to build or re-build their credit. This secured Visa doesn’t require a credit check, so it should be very easy to get. Here are the main Refresh secured credit card features.

- Credit limit: $200 to $10,000
- Purchase Interest rate: 17.99 percent
- Annual fee: CAD $12.95

#2 – Old Second Place
Peoples Trust Secured MasterCard^®

This card is no longer available.

This secured card is a flexible solution designed for customers with limited or no credit exposure, new immigrants to Canada, students, and anyone looking to build credit. It is also ideal for borrowers with poor ratings such as discharged bankrupts and those with serious credit problems. Similar to standard cards, this MasterCard helps holders to improve their rating with time. Customers with a verifiable source of income qualify.

Credit limit: $500 or higher
Purchase Interest rate: 12.99 percent
Monthly fee: CAD $5.80
Interest rate on cash advances: 24.50 percent

#3 – Third Place
Home Trust Secured Visa Card

Home Trust also offers a credit card that helps consumers to enhance their credit profile. Virtually everyone applying for a secured Visa gets approved, and there are two options available:
• No annual fee with 19.99 percent interest rate
and
• Annual fee of $59 with 14.9 percent interest rate

In addition to attractive terms and interest rate, this card goes with benefits such as the option to add an authorized user and a credit limit that can be as high as $10,000. The minimum limit is $500. This card can be used to book a vacation, make purchases online and over the phone, and access cash.

#4 – Fourth Place
Vancity enviro Secured Visa

Vancity features a secured card with a deposit of just $500 and plenty of added and optional perks, including delay and lost baggage insurance, price protection, travel accident insurance, and others. This card is available to applicants who don’t have a previous Canadian credit history and to recent immigrants. There are different options to look into, for example, enviro Classic which is a good choice for customers who pay the full balance. This card helps borrowers to rebuild credit and is intended for customers who have experienced financial problems in the past.
• Annual fee: none
• Interest rate: 19.5 percent

#5 – Fifth Place
DCU Visa^® Platinum Secured Credit Card

This card is a low-cost alternative to other secured products and goes with travel and everyday benefits and optional overdraft protection. Added benefits include travel insurance coverage, auto rental collision damage waiver, and extended warranty. A major benefit is the fact that there is no minimum interest charge. As an added benefit, balance transfers and cash advances are free. The card also goes with Visa Checkout for safe and convenient shopping. * Note: This card is not available in Canada
• Interest rate: 11.50 percent
• Penalty charges: 18.00 percent
• Annual fee: none

#6 – Sixth Place
RBC Visa Classic Low Rate

RBC features a low-cost card designed for customers who carry a balance. The card features optional and standard add-ons such as travel insurance and chip and PIN technology and can be used as a tool for debt consolidation to save on interest payments. Users are also offered additional cards with no annual fee. There is a card registration service for important documents and cards and auto payment service for ease and convenience.
• Interest rate: 11.99 percent
• Annual fee: $20

#7 – Seventh Place
Capital One^® Guaranteed Secured MasterCard^®

This card is ideal for individuals who need to establish credit history and goes with guaranteed approval. The credit limit varies and can be $300 or higher. The minimum security funds to deposit with the bank and access credit are in the amount of $75. Standard benefits that go with this card include referral to the closest ATM, zero liability, and others. Holders are free to make internet and in-store purchases, hotel reservations, car rental bookings, gas purchases, and more.
• Purchase rate: 19.8 percent
• Annual fee: $59
• Grace period: min 25 days

Fees, Limits, and Rates

The interest rate varies by issuer and is usually around 20 percent. It is in effect once the account has been activated. The rate on balance transfers and cash advances can be the same or different. In general, the rate is slightly higher compared to unsecured cards because financial institutions take more risk. Many applicants have a history of missed or late payments, maxed out cards, defaults, foreclosure, and even bankruptcy. This is why fees and service charges are usually higher as well. At the same time, there are many banks that feature credit cards with no annual fee, including Scotiabank and TD Canada Trust.

The grace period also varies from 19 to 25 days and applies to regular bank transfers and new purchases. Secured cards have a zero-day grace period on special bank transfers and cash advances. The available limit and security funds required depend on your financial circumstances and can be as high as $10,000 and as low as $500. Some banks even offer cards with lower credit limits. If you plan to make large purchases (one-time and big-ticket items), it is better to choose a card with a larger limit provided that you make timely payments and pay at least the minimum before the deadline (grace period). The minimum payment can be $10 or 3 percent or fees plus interest but this depends on the card of choice. Make sure you check the minimum monthly payment, especially if you only pay the minimum.

2020 Canadian Economic Outlook

January 10, 2020 By Samantha 6 Comments

Canada’s economy is on its way to a modest recovery due to capital inflows and growth in consumption and housing investment and a stronger real estate market. At the same time, a more limited growth is expected due to a mix of global factors such as Europe’s future after Brexit and trade uncertainty at the international level.

Top Performing Sectors and Industries

The fastest growing sectors and industries in 2020 are expected to be transit, subway, and train car manufacturing, cannabis production, and telecommunications networking equipment manufacturing. The list of top performing sectors also includes foreign currency exchange services, and online auctions and e-commerce. These sectors are expected to experience the fastest growth of over 11 percent.

The transit, subway, and train car manufacturing sector has experienced ups and downs over the last couple of years. Volatility can be explained by lower commodity prices and cyclical purchases. In 2019, the sector saw an increase in revenues of 31 percent, and revenues are projected to increase by 12.2 percent in 2020. Companies in the sector offer repair services and produce new freight cars and trains, rebuilt trains, new passenger cars and trains, parts, and new locomotives. The telecommunications networking equipment manufacturing sector experienced steady growth over the past five years and is expected to expand further. Businesses operating in this sector manufacture products such as parts, base stations, switchboards, and telephone sets.

Real Estate

Economic growth is also fueled by a healthy real estate market, especially in cities such as Ottawa and Toronto. Toronto is one of the fastest growing cities in North America, one of the main reasons being immigration. While the residential market has shrunk after the introduction of the mortgage stress test, home prices and sales are expected to stabilize. Ottawa is also performing well and will experience economic growth in 2020. This can partly be explained by migration from other regions and a strong housing market.

The industrial real estate market is also vibrant as evident from the low vacancy rates across Canada, especially in the Greater Toronto Area and Vancouver. Rental rates have increased due to high demand. The office building sector is also a healthy market, especially for downtown properties. This can be explained by the fast growth of the technology sector and a healthy labour market. Rental housing is also in demand as more and more people choose to downsize, including millennials and baby boomers. Demand is also higher for condominiums than single-family units mainly due to affordability, downsizing, growing populations, and increasing urbanization. In the retail sector, there is less demand for power centres, regional malls, and outlet centres. One of the main reasons is the growth of e-commerce.

There is also demand for senior housing as more and more older people choose to move to senior communities with high-end amenities. Developers, however, face major challenges such as regulations and policies and high costs. In 2017, the FPT Seniors Forum Ministers published a report according to which the majority of seniors prefer to live in senior communities but face challenges such as availability and limited access for mobility aids. The report reveals that many senior homes lack safety features, lighting, railing, ramps, and steps.

Possibility of Recession

In December 2019, Express Employee Professionals conducted a survey interviewing some 585 human resource professionals, decision-makers, and businesses. Of them, 46 percent believe that Canada is unlikely to enter into recession during the next 2 years. Still, 20 percent of respondents foresee a recession in 2 years, 18 percent believe that recession will hit in 1 – 2 years, and 12 percent see it coming in 6 months to 1 year. While growth will remain modest, experts share the view that recession is not expected in 2020. The main factors that fuel growth are residential investment, a vibrant housing market, and a strong job market. The real estate market experienced a decline between 2018 and mid-2019 mainly due to higher interest rates, the impact of the mortgage stress test, and restrictive policies introduced in Ontario and British Columbia. In 2019, the slowdown was offset by the creation of over 360,000 jobs in 10 months. Some 78 percent of businesses owners interviewed by Express Employee Professionals shared that they found it hard to fill job vacancies. Indeed, the unemployment rate in Canada has fallen to historic lows. Wage growth is mainly the result of labour shortages.

According to experts, Canada is unlikely to enter into recession at a time when wages are on the rise and unemployment rates are low unless the U.S. is hit by recession. In 2020, the U.S. economy is expected to grow by 2 percent, driven mainly by rising wages and a healthy labour force. Investment will also boost growth as businesses benefit from tax policy changes.

Labour Market Outlook and Jobs

In August and September 2019, Canada’s economy created about 81,000 and 53,000 jobs, respectively. Employment levels remained steady in all provinces and territories and increased in Nova Scotia and Ontario. While the economy added some 400,000 jobs in 2019, Canada is likely to face a tight labour market because more people are about to leave the workforce (late boomers) than enter the labour market (school graduates). Experts predict that from 2026 on, some 100,000 workers will leave the workforce on an annual basis. Immigration will result in a growth rate of 0.7 percent, and the share of immigrant workers will increase from 24 percent to 30 percent by 2040.

Labour Shortages by Province

A number of positions are in demand in Canada, including licensed practical nurse, welders, industrial electricians, and software engineers. Demand for jobs varies from province to province, however. According to the Newfoundland and Labrador Labour Market Outlook 2020, some 3/4 of job vacancies will be in sectors such as healthcare, government services, education, and social science, and equipment, transportation, and trades. Other jobs in demand include administrative, finance, and business occupations and service and sales occupations. Positions that are expected to experience the fastest growth are in sectors such as management, service and sales, utilities, manufacturing and processing, and health. Alberta will also experience labour shortages by 2025, including positions such as transit and motor vehicle drivers, home support and childcare workers, and medical technicians and technologists. Experienced professionals will be in demand across industries such as healthcare, computer and information systems, and transportation and construction.

The aquaculture, horticulture, and agriculture sectors are also expected to experience labour shortages, including positions such as supervisors and operators. In British Columbia, demand for workers exceeds supply as well, especially in sectors such as administration, finance, and business, sales and service, and equipment operators, transport, and trades and related. Other industries that are expected to face labour shortages include government, community, social, and law services and education, management, and healthcare. The sectors with the largest number of job openings include administration, finance, and business (167,000) and service and sales (187,000). Educational counselors, teachers, nurses, and wholesale and retail managers are also in high demand. In addition to high skilled occupations, businesses are looking to hire kitchen helpers, food counter attendants, and cashiers.

Immigrant Workers

Canadian companies are also looking to hire foreign workers and offer work permit visas. Production, manufacturing, packaging, harvesting, fruit picking, and agricultural businesses are offering jobs across Canada. Foreign workers are offered jobs such as delivery driver, packer and picker, and general farm laborer. Other positions include forklift operator, security guard, textile factory worker, and baby doll maker. The construction industry is also hiring workers such as plumbers, welders, painters, and electricians. The hospitality industry is looking to hire waiters and receptionists. Accountants are also in demand.

Financial Markets and the Banking Sector

According to Deloitte Canada, a number of factors have a negative impact on the banking sector, among which changing work patterns, climate change, changing demographic trends, and a significantly reduced banking capacity. This means that only financial institutions that have differentiated capabilities and capabilities of scale will stay competitive.

When it comes to financial markets, Canada’s equity has grown by 18.3 percent in 2019, following countries such as Australia, Taiwan, Germany, the U.S., and New Zealand. In 2020, experts predict slightly better returns for Canada compared to 2019. Financials, materials, and energy make for about 60 percent of key stock. In 2019, the top performing industries on the Toronto Stock Exchange included technology, financials, utilities, and airlines. Experts predict that in 2020, top performing sectors will include technology, airlines, financial services, and electrical equipment and utilities. Companies with the best performing stocks will include Enghouse Systems Limited, Cargojet Inc., Kinaxis Inc., and Equitable Group Inc.

How to Use Credit Cards Smart

November 18, 2019 By Samantha 4 Comments

Credit cards have benefits and drawbacks and knowing them is the key to staying away from debt and making better money choices. While drawbacks include high interest rates and card debt, there are also multiple benefits such as earning cash back and rewards points, easier budgeting, and more.

Drawbacks

Getting in Debt

Some people view credit cards as free money which can be dangerous, especially when combined with overspending and making frivolous purchases. Borrowing large amounts without repaying them can easily land you in serious debt. This, on the other hand, will ruin your score and make it more difficult to borrow in the future.

High Interest Rates

Some cards carry high interest rates and not paying the balance in full can be a recipe for financial disaster. You will incur a lot of debt if you tend to spend more than what you can afford to pay. Some store cards also have high rates of over 30 percent and low limits and are best to be avoided.

Benefits

Using Secured Credit Cards to Rebuild Credit

Secured credit cards help people with tarnished scores to rebuild credit and access a wide array of borrowing tools with beneficial terms. Cards such as the Refresh Financial Secure Visa Credit Card, for example, feature easy approval regardless of your credit score and affordable interest rates to rebuild your history. This is provided that you spend responsibly and pay off the full balance.

Being Able to Rent a Car/Hotel

Another benefit for cardholders is that they can rent a car or book hotel accommodation. Some cards allow users to earn points that can be redeemed for hotel stays and room upgrades. It is also easier to rent a car or book a hotel with a credit card because having one shows that a bank or another entity has already trusted you with credit.

Car Insurance

Using a card that comes with rental car insurance means that you don’t have to buy additional coverage. This means that you save money and time as you don’t have to deal with insurers and check their policies and terms. Some cards go with rental car collision loss/damage insurance, one example being Scotiabank Platinum American Express. Users are automatically insured in case of car theft or damage. Cardholders are covered up to the cost of the rental, except for cars over $65,000.

Travel Insurance

Some cards also feature travel perks such as travel insurance for flight cancellations and delays and hotel expenses. Issuers offer different types of policies such as emergency medical transportation, travel accident protection, change fee coverage, and trip cancellation. Scotiabank Platinum American Express, for example, offers comprehensive travel coverage, including travel accident, delayed and lost baggage, trip cancellation, hotel/motel burglary, and more.

Earn Rewards Points

Many Canadian banks run rewards programs that allow users to collect points and redeem points for purchases, events and concerts, flights, and statement credit. Rewards points can also be redeemed for food and drinks, hotel stays, trips, and subscription services. Canadian banks also offer cards with flexible redemption options, for example, the Scotiabank Rewards® Visa Card. Users are offered two options – points plus pay or points only. Rewards points can be redeemed for travel, merchandise, prepaid cards, and gift cards. Users also enjoy exclusive benefits such as cruise shore excursions, cruise upgrades, shipboard credit, hotel and vacation package discounts, and car rental discounts. Scotiabank Rewards Visa Card

Earn Cashback

There are also cards that allow users to earn cash back on purchases, including groceries, dining and entertainment, gas, and more. Many cashback cards feature added benefits such as welcome bonuses, low introductory interest rates, no annual fee, and no spending caps. The Scotia Momentum® Visa Infinite Card and Tangerine Money-Back Credit Card are two options to earn money back. The Scotia Momentum® Visa Infinite Card offers 4 percent back for every dollar spent on subscription purchases, recurring payments, and groceries, including supermarket purchases, gym memberships, utility bills, and insurance premiums.
Subscription services include things like lifestyle boxes, meal kit delivery, and music and video streaming.*Limited time offer – Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, no annual fee in the first year, including on supplementary cards. A welcome offer value of $350*. Offer ends April 30, 2020.The Tangerine Money-Back Credit Card offers 2 percent back on purchases in multiple categories, including parking and public transportation, entertainment, home improvement, and drug store purchases. Users also earn money back on gas, hotel and motel stays, dining, furniture, and grocery purchases. Cardholders benefit from perks such as no annual fee, no limits, and automatic earning.

Budget Easier

Some credit cards also offer breakdown of spending by category which makes budgeting easier. It is easy to track and monitor spending by category, including restaurants, gas stations, and supermarkets. Other categories may not be included, for example, pending transactions, cash advances, balance transfers, and returns. Some issuers also offer advanced features such as the option to browse by merchant category, amount, date, and merchant name. There are spending trackers that enable users to access their credit and debit accounts and choose from different spend categories such as education, dining, donations, cash, business, etc. Users can check their account balance, pending balance, and available funds, set savings goals, and make secure payments.

Start a Business with a Credit Card

Starting a business with a credit card is also an option because many issuers offer cards with high limits. The money can be used to cover startup costs and operating expenses such as salaries, insurance, office supplies and equipment, rent, and taxes. Using a business credit card is also a good way to build business credit and benefit from better terms in the future. The type of card to choose depends on the business that you plan to start and the expenses you are likely to incur. If gas money is your biggest expense, for example, then you may check business cards that offer cash back for gas purchases. Scotia Momentum for Business VISA Some cards offer both cash back and insurance perks, for example, the Scotia Momentum® for Business VISA. Scotiabank also features discounts on business purchases, a long grace period of 25 days, and supplementary cards. Businesses are offered comprehensive insurance coverage, including rental car collision loss damage and travel emergency medical insurance.

Have Low Conversion Fees between USD/CAD

This is yet another benefit for cardholders who frequently travel or make purchases in US dollars. Many cards charge foreign transaction fees of 2.5 – 3 percent for purchases made outside of Canada. Some cards, however, feature no US dollar foreign currency conversion fees to help save money on purchases in US dollars.

U.S.Dollar Credit Cards in Canada

As said, these cards help avoid conversion fees and come with added perks such as cash back, rewards points, and insurance coverage. The Scotiabank ® U.S. Dollar VISA Card is one option in Canada, featuring additional benefits such as instant cash advances, free supplementary cards, and car rental discounts. Scotiabank U.S. Dollar VISA Card

Low Interest Credit Cards for Longer Term Borrowing

Low interest credit cards help save on interest charges and are a good choice for users who find it difficult to pay off the balance in full. Low interest cards can be used for everyday purchases such as car rentals, travel, event tickets, electronics, phone bill payments, online purchases, and others. They can also be used for large purchases that have to be spread out as the interest charges will be lower than that of standard cards.

Credit Cards for Students

Many Canadian issuers also offer cards to students who usually have limited or no credit exposure. In addition to the chance to establish good credit, there are incentives such as money back, rewards points, and no annual fee. The Scotiabank Scene® Visa Card is one option for students who wish to earn rewards points and have no annual fee. Cardholders earn points for purchases at Cineplex.com and Cineplex theatres and for regular purchases. There are added benefits such as free supplementary cards, car rental and restaurant discounts, and credit card protection.

Using Credit Cards Smart

To save on interest charges, it is important to pay the balance in full each month. In some cases, as with large purchases, it is not possible to pay off the balance but it is a good idea to keep it as low as possible. Carrying a balance of over 30 percent is not only costly but may affect your credit score. If you borrow long term, then it is best to use a low interest credit card to save on interest charges that add up. This is also a way to keep debt from piling up. Lastly, borrowing on a credit card makes sense when you plan to start a new business or another productive venture that will earn profits and help repay your debt.

Using a credit card smart is also making you more financially disciplined. On the other hand, carrying large balances means that you spend more than you can afford. This is a red flag for financial institutions and may affect your credit score, especially if your credit utilization is high.

Top 7 Business Credit Cards in Canada

September 18, 2019 By Samantha 12 Comments

Some of the best business credit cards in Canada are offered by financial institutions such as the Bank of Montreal, CIBC, TD Bank, and RBC. They feature cashback and rewards points, low annual fees, low purchase rates, insurance perks, and other beneficial features.

Rewards

CIBC Aerogold^® Visa for Business

CIBC Aerogold Visa for Business comes with travel benefits, extensive insurance coverage, and low interest rate. Customers are offered 35,000 bonus miles and 1.5 miles per $1 on purchases made at gas stations, travel agencies, car rental agencies, hotels, and airlines. All other purchases earn at 1 point per $1. Rewards points can be redeemed for merchandise, entertainment, car rentals, gift cards, and getaways. Rewards are offered across different categories such as sports and outdoor merchandise, home and garden, health and wellness, fashion and accessories, and activities and entertainment. The category of activities and entertainment includes SPA and gateways, attractions and parks, and events and dining. Examples of travel rewards are travel accessories, travel and cruise gift cards, and car rental certificates. Miles can also be used to pay expenses such as surcharges, fees, and taxes on airfare. CIBC Aerogold Visa also features extensive insurance coverage, including trip interruption and trip cancellation, common carrier accident, auto rental collision, and flight delay and baggage coverage. Mobile device and hotel burglary insurance are also available. Only customers with a minimum household income of $35,000 qualify.

Cash interest rate: 50 percent
Purchase interest rate: 12.99 percent
Annual fee: $180

TD Business Travel Visa Card

Toronto-Dominion offers a travel credit card with a selection of automotive, travel, and everyday benefits. Customers earn 3 points per dollar on business-related purchases, 6 points on booking travel through Expedia by phone, and 9 points on booking travel online. The card also comes with insurance perks such as lost and delayed luggage, common carrier travel accident, trip/flight delay, and travel medical insurance. Automotive benefits are also offered, including low base rates at Budget Rent a Car and Avis Rent A Car and auto rental collision/loss damage coverage.

Under the Visa SavingsEdge Program, customers qualify for generous discounts of up to 25 percent which apply to business-related purchases.

When applying, clients are asked to provide documents such as articles of incorporation, partnership agreement, or master business license, depending on the type of business (corporation, partnership, or sole proprietorship). Customers may also be asked to present their business financial statements and notice of assessment. They may apply by phone, at a local branch, and by booking an appointment.

Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $149
Additional cards: $49
Minimum credit limit: $1,000

Cash Back

Scotia Momentum^® for Business VISA

Also a premium business card, Scotia Momentum for Business features up to 3 percent cashback on business expenses. Cash back is also offered on recurring payments such as gym memberships, insurance coverage, telecommunications, and subscriptions. Expenses that qualify for cash back include purchases made at office supply stores, restaurants, and gas stations. Supplementary cards also earn cash back. Business customers also benefit from insurance perks such as rental car collision and travel emergency medical insurance. The travel emergency medical insurance, for example, covers expenses such as surgeons’ and physicians’ fees, licensed ambulances, hospital stays, prescription drugs, medical supplies and services, and nursing care.

An added benefit is the fact that Scotiabank offers a low introductory rate of just 2.99 percent which is applicable to balance transfers made during the first six months. The credit limit is between $500 and $100,000. Visa SavingsEdge is also a useful feature available to qualifying businesses which allows them to get access to discounts and thus reduce costs. Customers are offered discounts on business purchases at participating merchants such as Blue Mountain, Sage 50, The UPS Store, Umbra, National Car Rental, and more. Discounts are offered on items in different categories, including entertainment and travel, telecommunications, and electronics, computer, and retail. Merchants offering discounts also operate in industries such as hotels, business software and publications, and business services and products. Discounts are in the range of 3 – 10 percent and up to 25 percent. To enroll in the program, cardholders are asked to fill in details such as postal code, business name, and industry (i.e. retail, real estate, manufacturing, transportation, construction, etc.).

Annual fee: $49
Supplementary cards: $29
Interest rate: 19.99 percent
Grace period: 25 days

No Annual Fee

BMO CashBack^® Business MasterCard^®

This is a good choice for customers looking for a no annual fee credit card, featuring a welcome bonus, money back, and optional employee cards. In addition to saving on annual fees, holders are offered 6 percent cash back on internet and phone bills, office supplies, and gas purchases during the first 4 months. Purchases made after the promotional period earn 1.5 percent cash back. Gas purchases at Shell locations earn at 1.75 points per dollar.

Additional benefits include extended warranty, automatic rebates at participating retailers, and pre-authorized payments. In addition to pre-authorized payments, bills can be paid at any BMO branch, online, by phone, and by mail. Customers are also offered emergency cash advances and replacement cards and assistance with stolen and lost cards.

Depending on the type of business, customers are asked to bring documents such as master business license, trade name registration, partnership agreement, and articles of association. Corporate customers must bring documents such as corporate profile report, articles of amalgamation, articles of amendment, and complete articles of incorporation. Business customers also provide details such as type of ownership, percentage ownership, nature of primary business, and occupation.

Cash advances: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $0

Protection and Insurance

RBC^® Avion^® Business for Visa

This card comes with an extensive insurance coverage, including extended warranty, liability waiver, rental car, and trip interruption and trip cancellation insurance. There are added incentives such as 20,000 welcome points, fuel discounts, and travel rewards, including tours, cruises, car rentals, hotels, and packaged holidays. Customers are free to choose from different rewards such as gift cards, merchandise, and Apple accessories and products. Every dollar spent on purchases earns 1 rewards point. Cardholders also earn triple rewards points on travel experiences offered by Carlson Wagonlit Travel and double rewards points on truck and car rentals by Thrifty. There are also financial rewards and the option to donate to a charity, pay with points, or convert points.

Cash advance rate: 22.99 percent
Purchase rate: 19.99 percent
Annual fee: $120
Additional cards: $50

American Express^® Business Gold Rewards Card

American Express also offers a rewards card that comes with a generous bonus of 25,000 points. Rewards points can be transferred to loyalty programs, used toward domestic or international airfare, or redeemed in the form of statement credit. Every dollar in travel purchases earns 2 points and so do purchases made at drugstores, grocery stores, and gas stations. Qualifying travel purchases include cruises, car rentals, hotel accommodation, and airfare. Every dollar in everyday purchases earns 1 point.

One of the main benefits for cardholders is the comprehensive insurance coverage. Customers are offered travel accident, baggage delay, flight delay, and hotel/motel burglary coverage. Car rental damage and theft, trip interruption, and stolen and lost baggage insurance are also available. Out of province/country emergency medical coverage is included as well.

This card also comes with a host of travel benefits, including complimentary room upgrades, vehicle upgrades, and hotel credit toward golf, spa, and dining.

Residents and citizens who have a Canadian credit file qualify provided that they are of the age of majority.

Annual fee: $250
Grace period: up to 31 days
Additional cards: $50

Low Interest Rate

CIBC bizline^® Visa Card for Small Business

This offer by CIBC is ideal for customers who wish to save on interest rates and still benefit from perks such as a high credit limit, additional cards, and insurance coverage. Holders are free to request up to 9 additional cards. The minimum annual income is $35,000. This credit card is also a good choice for business owners with revenues in the range of $35,000 – $5 million.

Cardholders are offered common carrier accident insurance and a spend manager solution to track and organize spending, set alerts, and develop customized budgets. The interest rate is based on the applicant’s credit score which makes this card a good choice for business owners with very good and excellent credit histories.

Purchase interest rate: CIBC Prime + 1.5 percent
Cash interest rate: CIBC Prime + 1.5 percent
Annual fee: none
Additional cards: no annual fee

There are plenty of premium business credit cards that feature low interest rates, introductory rates, no annual fees, extensive insurance coverage, and airmiles, rewards points, and cash back. Some cards also feature complimentary bonus points, complimentary concierge, free additional cards, and attractive discounts on office supplies, equipment, and other business-related expenses.

How to Afford a Summer Vacation When Money is Tight

July 5, 2019 By Samantha 1 Comment

Saving for a summer vacation can be difficult when money is tight. Many Canadians admit that they cannot afford it, and many leave vacation days unused. Going on vacation on a tight budget requires careful planning and smart choices to save money and enjoy time off. Here are some simple things to do to cut expenses and keep spending under control.

What Expenses Can You Trim?

Expenses fall in two categories – essential and non-essential. The category of non-essential expenses includes rented appliances, lottery, hairdressing, alcohol, and cigarettes. Essential expenses include things like baby items, car insurance, and property taxes. Non-essential costs are expenses that you can trim, whether dry cleaning, taxis, or pet insurance.

To save money for your summer vacation, you may need to cut down on expenses such as magazine and newspaper subscriptions, club memberships, dining out, and entertainment. Other leisure expenses that may ruin your budget include sports activity and leisure supplies, fine dining events, movie streaming subscriptions, and season passes and tickets.

Some habits are not only unhealthy but can be a real drain on your budget, be it drinking or smoking. Quitting smoking will help you to save a lot of money and get in good shape. There are other ways to save money such as shopping at farmers markets and discount grocery stores, using coupons, and collecting credit card rewards points to redeem for flights, room upgrades, etc.

Create a Spending Plan

The next step is to create a spending plan by looking at your disposable income and expenses. This is also a way to find out whether you need to cut down on expenses to stay on budget and to identify your priorities. The easiest way to create a spending plan is to list all of your monthly expenses, including childcare, grocery shopping, loan and credit card payments, mortgage or rent, and health and auto insurance. Other expenses to list include your phone, electricity, and water bills, car payments, subscriptions, and household maintenance. Make a list of your sources of income to find out what your gross income is. Sources of income include your salary, wages, and bonuses, investment and interest income, and alimony and child support. Once you know how much you earn and spend, you will be able to figure out how much you can save for your summer vacation.

It is also a good idea to divide your expenses into irregular and fixed expenses. The latter include debt payments, bank fees, utility bills, and rent. These are expenses that will not change on a monthly basis and are easy to budget for. The category of irregular expenses includes vehicle maintenance and insurance, health expenses, pest control, school supplies, and weddings and birthdays. In general, irregular expenses come up once or twice a year, and it is important to budget properly and save enough to meet them when they come up. There are also variable expenses such as recreation and sports, work lunches, personal care items, and groceries. This is the category to look into and identify expenses that you can cut back on to save for your holiday.

Go on a “Staycation”

Going on staycation is a cheap option when money is tight. Staying home, relaxing, spending time together, and going on day trips is one way to get a break and save money. What you can do is visit local water and amusement parks, visit science or history museums, and join free events, fairs, and festivals. There are plenty of sports and other outdoor recreational activities to try, be it canoeing, kayaking, tennis, or handball. Another idea is to sign up for a class or course to master some new skill. Depending on where you live, you can take a creative writing course, yoga class, or cooking class. This is also a good time to try a new hobby such as woodworking, sewing, candle making, or ice skating.

Go Camping

Going camping is also a way to spend time together and escape from your daily routine. Just pick a campsite and pack essentials such as utensils and cookware, navigational tools, personal items, sleeping bag, tent, folding chairs, and other camp essentials. Don’t forget to bring entertainment items to maximize fun and spend quality time together. Pack things such as kayaking or biking gear, playing cards, board games, camera, and binoculars.

When choosing a camping site, there are two options to look into – free and private. If your budget is tight, you are probably looking for a public campground where you don’t have to pay a fee. On the downside, public campgrounds may lack cooking facilities, bathrooms, and hookups. If you are more of an adventurous type, however, you may actually enjoy it. Look for areas that are designated as Crown Land. Remember that you are allowed to stay up to 21 days at the site that you choose, and then you have to move your camping equipment and gear at least 100 meters away from where you stayed.

There are plenty of camping sites in Canada’s national parks but you will have to pay a fee. These include the Berg Lake Campground in the Mount Robson Provincial Park, Main Campground in the Alice Lake Provincial Park, and Point Campground in the Peter Lougheed Provincial Park. Recreational activities abound, from fishing, hiking, and bicycling to swimming and canoeing.

Rent a Cottage for the Weekend

Renting a cottage is also a good idea when money is tight. One option is to rent off-season and not in peak months such as August and July. Many people rent via popular platforms such as CanadaStays and Airbnb, but it pays to contact owners directly and inquire about prices and availability. A third idea is to join a mailing list and check for special offers. Many rental agencies feature such lists and offer good deals on new properties, and it always pays to check for last minute deals.

Staying at new resorts and hotels is another way to save money when going on vacation. Look for newly renovated and constructed resorts and hotels that offer deals to attract customers.

Budgeting for Vacation Expenses

There are other things to do before going on vacation, including budgeting for costs such as public transportation, rental car fees, gas, and train and airfare tickets. Some travel expenses are easy to miss when planning a vacation, for example, vaccinations, foreign transaction fees, emergency expenses, and mobile phone charges. If you already have attractions on your must-see list, you may want to budget for tickets and passes for concerts, museums, and attractions. How much it will cost you to go on vacation also depends on the destination, whether you are staying at a hotel or campsite, whether you are eating out or packing your own food, and other factors. Other travel expenses to include in your budget are exchange rates, travel insurance, visa costs, baggage fees, and onboard food and beverage purchases.

If you are unsure how much it will cost you, you may use a vacation calculator to create a travel budget. You just need to enter details such as number of children and adults, number of travel days and lodging, number of fun days, and amount of money saved for the trip. You also need to enter details such as number of miles, cost per gallon, and your car’s miles per gallon rating. If you are travelling abroad, you can use a calculator that displays travel costs at your destination of choice.

Final Words

Going on vacation on a tight budget may look like a challenge but there are plenty of ways to save money to get the most out of your journey. Creating a spending plan and cutting down on expenses will help you to set money aside and see how much you can save to go on vacation. If money is tight, a staycation, long weekend in a cottage, or going camping are ways to spend quality time and enjoy life. Going on vacation is a good way to take a break from daily routine, stress, and work and family responsibilities. A summer vacation not only helps prevent burnout but also helps connect with your inner self. It is also something to look forward to, offering ample opportunities to meet new people, make new friends, and just have fun, relax, travel, explore new places, and try new things. Whether you are going on vacation or taking a city break, spending time away from home will boost your energy so that you return to the office refueled and with a smile.

motusbank – Meridian Credit Union Creates a New National Bank

May 3, 2019 By Samantha 2 Comments

A subsidiary of Meridian Credit Union, Motus Bank features a suite of financial products, including mortgages, personal loans, investment solutions, and savings and checking accounts. As a full-service digital bank, it will soon introduce banking services tailored to the needs of business customers. Motusbank is a Canadian federally chartered bank that opened doors in 2018 and is headquartered in Toronto, Ontario. It is also a member institution of the Canadian Deposit Insurance Corporation.

The idea behind the new bank is to offer customers across Canada the opportunity to access all services and products and to manage accounts online. In fact, virtually everything can be done by phone, mobile app, and online. The new bank is customer-oriented and offers checking and savings accounts with no monthly fees.

Meridian Credit Union

As Canada’s third largest credit union, Meridian offers personal and business financial products and online banking services. Individual customers are offered a selection of checking accounts, including U.S. dollar, senior, electronic, and limitless. Meridian also features youth, advantage, and high-interest savings accounts. There is an array of credit cards to choose from, with cash back, U.S., travel, and Visa benefits. Lines of credit, personal loans, and fixed and variable rate mortgages are also available. Travel insurance and mortgage protection are also offered as well as investment solutions such as registered retirement income funds and tax-free savings accounts. Business customers also benefit from a wealth of financial products, including business U.S. dollar checking and small business checking accounts. In addition to cashback credit cards, customers are offered business lines of credit, loans, and mortgages, and equipment financing and leasing. Meridian also features cash management and investment solutions and business planning assistance.

Competitors

Unlike financial institutions that have shareholders and pay profits, motusbank has members and the main goal is to offer personalized service, competitive rates and pricing, and the option to access all products online, including mortgages, investment solutions, lines of credit, and more.

Why Choose motusbank

This new full-service digital bank features a selection of investment, borrowing, and savings solutions with competitive rates. Given that Motus has no physical branches and associated overhead costs, customers enjoy affordable interest rates on mortgages and personal loans. Another benefit is the fact that decisions on applications for loans, mortgages, and other products are made quickly.

Personal Loans and Other Borrowing Solutions

Personal loans come with low interest rates that can be as low as 5.15 percent, and members can borrow up to $35,000. Secured lines of credit feature even lower interest rates (3.75 percent) to help customers secure financing for major purchases. It is quick and easy to apply, and customers only need to provide their social insurance number and information such as housing and family status and employment type. They are also asked about the amount required and the loan purpose, i.e. vacation, investment, home repairs, debt consolidation, or recreational vehicle, boat, or vehicle purchase. Motusbank also features fixed and variable rate mortgages with affordable interest rates that can be as low as 2.90 percent. 5-year fixed rate mortgages come with an interest rate of 3.09 percent. In comparison, Scotiabank offers an interest rate of 5.34 percent on the same type of mortgage, and the Bank of Montreal offers 3.54 percent. Secured home equity lines of credit also feature a low rate of just 3.75 percent. CIBC, for example, offers a rate of 3.95 percent on secured credit lines.

Savings and Checking Accounts

Motusbank also features a selection of checking and savings accounts, including RRSP, TFSA, and high interest savings accounts. Customers who choose to open high interest savings accounts can enjoy a rate of 2.25 percent. Savings accounts offer multiple benefits such as the option to make unlimited withdrawals and purchases, free-of-charge access to ATMs, no banking fees, no minimum balance requirements, and no monthly account charges. Motusbank also features checking accounts with no monthly fees, and customers enjoy unlimited Interac e-transfers. There are plenty of reasons to choose this type of account over products offered by other banks. The account has no minimum balance requirement and allows for unlimited bill payments and debit purchases. Another benefit is that every dollar earns 0.50 percent interest. Customers are free to make mobile check deposits and are offered 25 checks free of charge. Those who are travelling to the U.S. can access cash through the Cirrus or Accel ATM networks.

Investment Products

Motusbank also features investment solutions such as 5-year RRSP guaranteed investment certificates, 18-month TFSA GICs, and 18-month GICs. The 5-year RRSP GIC, for example, comes with a competitive interest rate of 3.25 percent, which makes it a good addition to a balanced investment portfolio. In comparison, CIBC offers non-redeemable 5-year RRSP GICs with an interest rate of 1.25 percent. Opening an account is quick and easy, and customers are asked to provide details such as personal information, term and length, and renewal option, i.e. reinvest in the same term or payout to the account. The bank features additional benefits such as tax free options, choice of non-registered and registered plans, and a low minimum investment of just $100. Terms vary from 1 month to 5 years.

Online Banking and Features

The online banking platform of motusbank offers convenient features to access and monitor investment accounts and view e-statements. Customers are free to download deposit forms and transactions and filter and sort accounts. Notifications, alerts, and secure messaging are also available. Depositing checks is also quick and easy and can be done from the customer’s phone. There is also an option to set up mobile alerts. The mobile app offers convenient features that allow customers to transfer money, make bill payments, and check account balances, including savings and checking accounts and tax free savings accounts. Mobile Bill Pay is a convenient feature that allows users to make bill payments and access more than 10,000 payees. The app can be used on Android and iOS devices.

The Money Mover service featured by motusbank offers customers the option to transfer large amounts of up to $10,000 daily and is free to use. Money is transferred within 3 business days. Users are also free to set up recurring and future transfers through the mobile app or online. Motusbank also features Interac payments to transfer amounts of up to $3,000 a day, and money is deposited immediately. Customers can make an unlimited number of transactions up to $10,000 a month.

The bank’s contact centre offers assistance to members and can be reached by dialing its international or toll free number. While the bank is fully digital, the fact that it is customer-centric means that the emphasis is on customer service. Motusbank also places an emphasis on safety and security, and all deposits are insured by the Canada Deposit Insurance Corporation.

Finally, the new bank also offers advice and practical information across a host of different topics related to borrowing, investing, and saving. The goal is to help customers learn more about dealing with debt, planning for retirement, preparing financially for a new child, and choosing the best investment solution. Other topics include home improvement loans, choosing between variable and fixed rate mortgages, down payments. The bank also features handy online tools such as mortgage prepayment calculator, savings calculator, retirement planning calculator, and loan and line of credit calculator. These online tools help customers figure out what size of mortgage to apply for, whether their monthly payments are affordable, and other important issues.

Bad Credit Personal Loans in Canada

March 10, 2019 By Samantha 87 Comments

This post has been updated on Mar. 10^th, 2019 to reflect new developments in the Canadian credit markets for people with less then perfect credit.

I receive many request daily from people who want to borrow small amounts of money short or medium term, people who usually have nobody else to turn to because they have bad credit. It breaks my heart reading these requests, but I’m not in the business of lending money and unfortunately I can’t help them out. The way I’m trying to help out is by educating people to avoid debt whenever possible, or at least to use forms of credit that won’t cripple them financially down the road. I understand that when you have a poor credit and the rent is overdue, or you have an emergency, sometimes you have to bite the bullet and borrow from a private lender that demand high interest on their loans, but such bad credit loans should be dealt with swiftly to avoid going into a never ending debt spiral.

I see signs of restricting personal credit in Canada everywhere lately. Even secured credit card providers like Peoples Trust has discontinued their popular secured card this summer. The big five Canadian banks have tightened credit issuing and mortgage underwriting. Getting a personal loan if you have a bad credit is no longer an easy task in Canada. You can still get a small bad credit personal loan from alternative lenders, but they come with much higher interest attached, and should be used only as last resort.

Although many Canadians would hate to admit it the real estate boom of the last 15 years is now over. This is not a real estate post, but the fallout of the declining real estate has direct implications on the ability of the average Canadian to access personal credit. The first victims of declining real estate values are of course people who rely on home equity lines of credit and refinancing to pay their bills and expensive to service credit card debt. The rising interest rate environment that we find ourselves in isn’t helping this either.

Finance companies, credit unions, online lending services, and some banks offer secured and unsecured loans to Canadians with bad and no credit. They usually offer short-term loans and a convenient and fast application process.

Getting a Bad Credit Personal Loan in Canada with No Credit Check

Online lending services and payday lenders offer loans for people with bad credit with no credit check. Some finance companies don’t run a credit check but require regular and stable income and look at the customer’s individual circumstances. Another option is to apply for a home equity or secured auto loan whereby your home equity or vehicle serves as collateral. Other loan providers include peer to peer lending services and payday lenders. Peer to peer services feature loans offered by individual lenders who may be more sympathetic and willing to offer loans to individuals with fair or poor credit.

Is There Such a Thing as Guaranteed Approval for Bad Credit Personal Loans

While many lenders advertise guaranteed approval, they usually require proof of income. In many cases, customers must have an active checking account. Guaranteed approval usually means that lenders accept applications from clients with a history of consumer proposals, bankruptcies, credit counseling, seriously delinquent accounts, and past collections. Thus loan providers have more lenient lending and credit requirements compared to banks. Guaranteed approval often means that loan providers accept applications from individuals with different credit profiles, and your credit score is not the most important factor.

How to Get Unsecured Personal Loans with Bad Credit

Comparison shopping is the best way to check rates, lending criteria, types of loans available, acceptable types of collateral, repayment schedules, and other details. Lending services usually request employment information such as length of employment, position held, gross income, monthly income, and employer. If applying together with a co-applicant, they must provide employment and personal information about the co-applicant, including net or gross income, age, and marital status. When applying for a bad credit personal loan in Canada, applicants also provide information such as mortgage payments and mortgage holders, number of dependents, current address, age, and social insurance number. Lenders want to make sure that customers will be able to pay down the loan within the agreed time frame. As a rule, loan providers are unwilling to deal with risky clients with no credit or financial record. This is the reason why they ask for proof of employment and financial stability to ensure prompt repayment. Customers with poor credit and excessive debt, for example, are at risk of default.

Top 5 Bad Credit Personal Loans Lenders in Canada

EasyFinancial, Capital Direct, Prudent Financial, Canada Lend, and Tribecca Finance are the top 5 lenders that offer secured and unsecured loans to individuals with poor credit.

EasyFinancial, for example, offers home equity and personal loans to customers who need cash to pay unexpected or medical expenses, pay a consumer proposal, or consolidate existing loan balances. The company also offers consumer loans to help borrowers repair or establish credit. Customers are offered home equity loans with long amortization periods of up to 40 years. EasyFinancial offers debt consolidation and personal loans to help clients reestablish credit. Clients are offered a bad credit personal loan of $500 to $10,000. The company advertises flexible and convenient payment options.

Capital Direct is another lending service that provides home equity loans and lines of credit to pay one-time, recurring, or unexpected expenses. Borrowers are offered lines of credit with variable repayment schedules and rates and debt consolidation options.

If you are looking for a bad credit loan in Canada, Prudent Financial is a good place to find small loans of up to $5,000. Approval depends on factors such as assets, debt, income level, and employment. The good news is that payments are reported to Experian, Equifax, and other credit bureaus.

Canada Lend is yet another lending service that offers second and bad credit mortgages, debt consolidation services, home equity lines of credit, refinancing options, and other financial solutions.

Secured Bad Credit Loans

Issuers provide secured loans to customers with bad and good credit. Loans are offered to borrowers with defaults, mortgage arrears, foreclosure, and missing loan payments provided that collateral is used to secure the loan. Collateral in the form of caravan, motorcycle, vehicle, real estate, or another valuable asset is required to secure the loan. Lending services advertise flexible repayment terms and schedules, easy application, and pre-approval options. The repayment term varies based on the borrower’s financial circumstances. The main benefit is that clients are offered larger amounts and lower rates compared to unsecured loans. At the same time, many lenders require that applicants are homeowners to qualify. The maximum loan to value ratio varies by issuer. When applying for a bad credit personal loan in Canada, clients fill in contact information, marital status, mortgage balance, collateral worth, amount requested, and other information. Some financial companies also ask about pay interval and employment (self-employed, student, housewife, employed, etc.)

Unsecured Bad Credit Loans

Some issuers offer unsecured credit in the form of short term loans with higher-than-average rates. There are loan providers that offer acceptable solutions but it is more difficult to get approved. One idea is to apply together with a co-signer. This can be a friend, relative, parent, coworker, or another person with good or stellar credit. Co-signers are 100 percent responsible for timely loan repayment and are taking a huge risk. It is also possible to get approved for a loan with less than perfect credit provided that you have stable income. Writing a loan application letter also helps. Include details such as repayment term and schedule and loan purpose and explain your financial situation. When applying for a loan, customers are asked to bring documents such as their financial and loan statements and income tax forms. Lenders are also interested in the applicant’s housing history, employment status, credit card debt, and outstanding loan balances. Customers also choose a loan term that can vary from 3 months to 10 years. They specify loan amount and purpose, for example, vehicle or furniture purchase, debt consolidation, home improvements, and others. Some lenders also offer loans for back to school expenses, funeral expenses, small rent arrears, holidays and travel, Christmas and wedding expenses, and unexpected expenses. With some lenders, you need to provide housing information, i.e. tenant of employer, housing association, living with parents, furnished or unfurnished tenancy, or homeowner.

Overview of Rewards Credit Cards

Best Rewards Cards Overall

Scotiabank Gold American Express® Card

Best No Fee Rewards Card

Tangerine Money-Back Credit Card

Best Cashback Card

Scotia Momentum® Visa Infinite

Best Travel Rewards Card

Scotiabank Passport™ Visa Infinite* Card

Best Store Card

PC Financial World Elite MasterCard

Best Card for Groceries

Triangle World Elite MasterCard by Canadian Tire

Best Canadian Cashback Credit Cards

1. Scotia Momentum® Visa Infinite Card

2. SimplyCashTM American Express

3. Tangerine Money-Back Credit Card

Best Travel Credit Cards

4. Scotiabank® Gold American Express®

5. BMO® World EliteTM MasterCard®

Best Credit Card with Low/No Foreign Transaction Fees

6. Home Trust Preferred Visa

7. RogersTM Platinum MasterCard®

Best Credit Cards with Insurance Coverage

8. Scotiabank Platinum American Express®

9. BMO® Cashback® World Elite® MasterCard®

Best Student Credit Cards

10. Scotiabank L’earnTM Visa Card

11. Scotiabank Scene® Visa Card

Best Secured Credit Cards and Credit Cards for Bad Credit

12. Refresh Financial Secured Visa Credit Card

Do You Need a Credit Card if You Already Have Bad Credit?

Can You Get a Credit Card with Bad Credit?

Does a Credit Card Help You Rebuild Bad Credit? Secured Credit Cards Explained

Types of Credit Cards for Bad Credit

Secured Credit Cards

Low Interest Credit Cards

Guaranteed Credit Cards

Prepaid Credit Cards

Store Credit Cards

Where Can You Find Credit Card Lenders for People with Bad Credit?

Affirm MasterCard®

No-Fee Scotiabank Value® Visa Card

Refresh Financial Secured Visa

Peoples Trust Secured MasterCard®

Home Trust Secured Visa Card

BMO® Preferred Rate MasterCard®

Capital One® Guaranteed Secured MasterCard®

TD Emerald Visa Card

RBC Visa Classic Low Rate

What to Do Next?

Find a solution to credit issues – get a secured credit card

How Secured Cards Work

Benefits for Users

What Is the Right Credit Card for You?

Who Is Eligible to Apply

Top 6 Secured Credit Card Picks

#1 – First Place No-Fee Scotiabank Value® VISA Card

#2 – Second Place Refresh Financial Secured Visa

#2 – Old Second Place Peoples Trust Secured MasterCard®

#3 – Third Place Home Trust Secured Visa Card

#4 – Fourth Place Vancity enviro Secured Visa

#5 – Fifth Place DCU Visa® Platinum Secured Credit Card

#6 – Sixth Place RBC Visa Classic Low Rate

#7 – Seventh Place Capital One® Guaranteed Secured MasterCard®

Fees, Limits, and Rates

Top Performing Sectors and Industries

Real Estate

Possibility of Recession

Labour Market Outlook and Jobs

Labour Shortages by Province

Immigrant Workers

Financial Markets and the Banking Sector

Drawbacks

Getting in Debt

High Interest Rates

Benefits

Using Secured Credit Cards to Rebuild Credit

Being Able to Rent a Car/Hotel

Car Insurance

Scotiabank Gold American Express^® Card

Scotia Momentum^® Visa Infinite

Scotiabank Passport^™ Visa Infinite^* Card

1. Scotia Momentum^® Visa Infinite Card

2. SimplyCash^TM American Express

4. Scotiabank^® Gold American Express^®

5. BMO^® World Elite^TM MasterCard^®

7. Rogers^TM Platinum MasterCard^®

8. Scotiabank Platinum American Express^®

9. BMO^® Cashback^® World Elite^® MasterCard^®

10. Scotiabank L’earn^TM Visa Card

11. Scotiabank Scene^® Visa Card

Affirm MasterCard^®

No-Fee Scotiabank Value^® Visa Card

Peoples Trust Secured MasterCard^®

BMO^® Preferred Rate MasterCard^®

Capital One^® Guaranteed Secured MasterCard^®

#1 – First Place
No-Fee Scotiabank Value^® VISA Card

#2 – Second Place
Refresh Financial Secured Visa

#2 – Old Second Place
Peoples Trust Secured MasterCard^®

#3 – Third Place
Home Trust Secured Visa Card

#4 – Fourth Place
Vancity enviro Secured Visa

#5 – Fifth Place
DCU Visa^® Platinum Secured Credit Card

#6 – Sixth Place
RBC Visa Classic Low Rate

#7 – Seventh Place
Capital One^® Guaranteed Secured MasterCard^®

CIBC Aerogold^® Visa for Business

Scotia Momentum^® for Business VISA

BMO CashBack^® Business MasterCard^®

RBC^® Avion^® Business for Visa

American Express^® Business Gold Rewards Card

CIBC bizline^® Visa Card for Small Business